Introduction to Management Group Assignment BM007-IMT

Page 1 of 19

Contents

1.0 Company Information of Coca-Cola Inc .................................................................................................. 2
1.1 I ntroduction ........................................................................................................................................ 2
1.2 Issues (Internet Rumors) ..................................................................................................................... 2

2.0 Mega environment contributing to The Coca Cola Company (TCCC) success ........................................ 3
2.2 Technology ......................................................................................................................................... 6
2.2.1 Application of technology in Coca-Cola ...................................................................................... 6

3.0 Task forces contributing to The Coca Cola Company (TCCC) success ..................................................... 7
3.1 Target Market ................................................................................................................................... 7
3.1.1 Consumers .................................................................................................................................. 7
3.2 Competitors ....................................................................................................................................... 8
3.2.1Coca-Colas Competitive Advantage......................................................................................... 9

4.0 Conclusion ............................................................................................................................................... 9

5.0 References ............................................................................................................................................ 10

6.0 Appendix ............................................................................................................................................. 12









Introduction to Management Group Assignment BM007-IMT
Page 2 of 19


1.0 Company Information of Coca-Cola Inc.
1.1 I ntroduction

Selling 1.3 billion beverage servings per day, the Coca-Cola Company is the worlds number
one maker of soft drink beverages. Coca-Colas trademark (red and white) is probably the
best known brand symbol in the world and is available in stores, restaurants and vending
machines across the world. The company was established in 1886 by Dr. (Doctor) John
Pemberton who was a pharmacist that time. Headquartered since its founding in USA,
Atlanta, Georgia, the Coca-Cola Company makes four (4) of the top five carbonated drinks in
the world, Coca-Cole at number one (1) and Diet Coke, Fanta, and Sprite at numbers three
(3) through five (5). This huge and extensive corporation operates one of the worlds most
pervasive distribution systems. This system allows the corporation to offer an estimate of
four hundred (400) beverage products in more than two hundred (200) countries worldwide.
Nearly 70 percent (%) of sales are generated outside North America with revenues coming
from different continents. Refer to appendix 1.0 for a revenue breakdown structure.
The formula and ingredients for Coca-Cole was invented by Dr. (Doctor) John Pemberton.
Till today, the formula and ingredients are kept a secret. This has aroused some issues or
internet rumors (information spread on the internet) about the ingredients used in Coca-Cola.
1.2 Issues (Internet Rumors)
Coca-Cola ingredients

There are so many rumors concerning Coca-Colas contained ingredients. Even so, the
one rumor that stood out and actually had an impact to Coca-Cola was the Cancer fear
over Coca-Colas colorings. An influential group of people have claimed an ingredient
used in Coca-Cola is a cancer risk and that it must be banned. These concerns relate to an
artificial brown coloring agent. The caramel coloring used in Coca-Cola is contaminated
with two cancer-causing chemicals. This has led to investigations by researchers from the
Introduction to Management Group Assignment BM007-IMT
Page 3 of 19

University of California and CSPI (Center for Science in the Public Interest) however,
results still remain inconclusive.
The have been rumors and leaks claiming that Coca-Colas secret recipe had been leaked
into society. It was suggested that it might be possible to recreate the taste and look of the
beverage. However, these claims were denied by the company, and was addressed by a
spokesman Many third parties have tried to crack our secret formula. Try as they might,
they have been unsuccessful because there is only one Real Thing Katie J. Bayne
(2008). In continuation, the spokesman further went on denying CSPIs stamen and
mentioned that there beverages are completely safe.

2.0 Mega environment contributing to The Coca Cola Company (TCCC) success
2.1 International (Coca-Cola Global Connection using CCI)
In terms of sales volume, Coca-Cola ecek (CCI) is the sixth (6
th
) largest bottler in the
Coca-Cola System. CCIs core business function is to produce, sell and distribute
sparkling and still beverages. CCI employs ten thousand (10,000) people and has
operations in;
Turkey (appendix 2.0)
Pakistan (appendix 3.0)
Kazakhstan (appendix 4.0)
Azerbaijan (appendix 5.0)
Kyrgyzstan (appendix 6.0)
Turkmenistan ( appendix 7.0)
Jordan (appendix 8.0)
Iraq (appendix 9.0)
Syria (appendix 10.0)
And exports to Tajikistan (appendix 11.0)
(Please refer to the listed appendices for further details) CCI has a total of twenty (20)
plants and offers a wide range of beverages to an estimate consumer base of 360 million
Introduction to Management Group Assignment BM007-IMT
Page 4 of 19

people. Coca Colas product portfolio goes beyond sparking beverages, the product
portfolio includes juices, waters, sports and energy drinks, tea and iced teas.
The Coca-Cola Company Uses the CCI system in ten (10) countries and is headquartered
in Turkey. CCI owns 99.96% of the shares that sells and distributes the Coca-Cola
company products in Turkey. Figure 2.0 shows the CCI Corporate Structure.
Introduction to Management Group Assignment BM007-IMT
Page 5 of 19


Figure 2.0
http://www.cci.com.tr/en/investor-relations/cci-at-
a-glance/shareholder-structure/
Introduction to Management Group Assignment BM007-IMT
Page 6 of 19

CCI (Turkey Operation) looks to expand its product portfolio in terms of packaging and
prices to provide a broader range of choice to consumers. Refer to appendix 2.1 for
Turkeys product range.
CCIs shares are traded on the Istanbul stock Exchange under the CCOLA.IS ticker and
its depository receipts are traded on the London Stock Exchange under the CICE (Coca
Cola Icecek A.S).LI ticker

2.2 Technology

In todays marketplace, technology is a key player in helping a business stay profitable.
Coca-Cola Company invests in technological research to find ways to become more
efficient and ultimately better competitors. The Coca-Cola Company (TCCC) address
external technological threats by investing directly in applied research to improve
recording and monitoring of the sales, production and delivery process between the Coca-
Cola Company and the bottling companies, thus, introducing a device known as a

2.2.1 Application of technology in Coca-Cola

The Coca-Cola Company uses technology to achieve efficiency and productivity at the
same time. Figure 3.0 shows a communication device within the CCI system.








Figure 3.0
Introduction to Management Group Assignment BM007-IMT
Page 7 of 19

This device allows CCI to connect with its country distributors. Turkey distributes these
devices to all nine countries (CCI channel). These nine countries will use this device to
order Coca-Cola products from the Headquarters in turkey. The device will show how
many orders have been made of a particular product and will be saved. In turn, Coca-
Cola retailers within those countries will also use this device to order products from the
Coca-Colas warehouse of that country and will be delivered to these retailers. This
device proves useful as it keeps records of supply and quantity and proves as a useful
type of technology for efficiency and productivity.

3.0 Task forces contributing to The Coca Cola Company (TCCC) success
3.1 Target Market

Coca-Colas primary target market is all consumers of all nations that have a thirst for
high-quality beverage from a reputable brand that cares about small communities and
saving the environment. The Coca-Cola Company (TCCC) is well known for advertising
to persons of all ages, genders, income, ethnicity and lifestyles. Over the last decade (10
Years), the Coca-Cola Company has focused on a secondary target market that is based
on specific psycho-graphic characteristics, of consumers that are health conscious and
interested in buying products to support their overall wellness. The Company has reached
this market through many product lines and has customized their website to provide
healthy resources and marketing of products that are considered smart choice.

3.1.1 Consumers

The Coca-Cola Company looks after and caters to consumer demands. They have created
different types of products to cater to each consumer. For instance, Coca-Cola launched
products for consumers who are concerned about health to ageing consumers (elderly
consumers). The following are the different products released for consumers;

Introduction to Management Group Assignment BM007-IMT
Page 8 of 19

Diet Coke, this product was made and designed for consumers who were/are
health conscious



Coke Zero, this beverage was designed for you men between the ages of eighteen
(18) and thirty four (34)



Diet Coke Plus is designed for consumers who are more health conscious and still
desire a sweeter taste with more vitamins and mineral


Coca-Cola Blak is designed for older more sophisticated consumers who are
willing to pay more




3.2 Competitors

The needs and tastes for the average consumers are ever changing. With trends that focus
on health and nutrition and the concerns with obesity, many consumers are changing their
behaviors and product choices. Bottled water, energy drinks and tea products have
become favored as opposed to the soft drink. This provides an external threat to the Coca-
Cola Company as these changes have allowed and increase in the number of competitors
in the industry. The Coca-Cola Company is not only in competition with soft drink
companies such as Pepsi, but+ also with other companies like Unilever, Kraft Foods and
Nestle. It is surprising to see Coca-Cola ranked at number three (3) in soft drinks,
however, they are ranked number one (1) in juices, teas and coffee products which shows
Introduction to Management Group Assignment BM007-IMT
Page 9 of 19

that the company is in touch with their consumers interests as well as understanding that
soft drinks cannot be their sole products in order to sustain business.


3.2.1Coca-Colas Competitive Advantage

Coca-Colas competitive advantage can be categorized by the following

Market leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark
beverages in the world in terms of total sales volume with operations conducted in
Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina
and Brazil.

Business partnership. Coca-Cola FEMSA is working together with the Coca-Cola
Company to develop more advanced joint business models to continue exploring and
participating in new lines of beverages, extending existing product line and effectively
advertising and marketing their products for Strong brand portfolio

Channel Marketing. Coca-Cola use a strategy that allows them to classify their markets
and develop targeted efforts for each consumer segment or distribution channel. The
companys channels are small retailers such as restaurants and bars, supermarkets and
third party distributors.

4.0 Conclusion
The Coca-Cola Company (TCCC) is well ahead of the game with their marketing efforts,
which has allowed them to sustain profitability for over one hundred (100) years. The
company is not only interested in advertising and marketing beverages, but making a
difference in every corner of the world in which they operate. Coca-Cola has not lost
touch because they have been able to change with the times after evaluating feedback and
listening to their customers. The company keeps their momentum by following changes
Introduction to Management Group Assignment BM007-IMT
Page 10 of 19

in the consumer environment and responding with new products. TCCC strives to go
beyond simple marketing and reaches into the hearts and lives of consumers.


5.0 References
Cci.com.tr
Turkey Our Geography Our Company Home Page
Cci.com.tr (2009) Turkey Our Geography Our Company Home Page. [online] Available at:
http://www.cci.com.tr/en/our-company/our-geography/turkey/ [Accessed: 25 Mar 2013].

Lifestyle.iloveindia.com
History Of Coca Cola - Interesting Information On Origin & Background Of Coke
Lifestyle.iloveindia.com (2013) History Of Coca Cola - Interesting Information On Origin & Background Of Coke. [online]
Available at: http://lifestyle.iloveindia.com/lounge/history-of-coca-cola-1734.html [Accessed: 25 Mar 2013].

HealthPop
U.S. regulators: Soda doesn't cause cancer
HealthPop (2012) U.S. regulators: Soda doesn't cause cancer. [online] Available at: http://www.cbsnews.com/8301-
504763_162-57391560-10391704/chemical-found-in-cola-causes-cancer-watchdog-warns-what-does-fda-say/ [Accessed:
17 Mar 2013].

Cokecce.co.uk
Coca-Cola Enterprises Ltd : Coke Zero gets a fruity twist for 2013
Cokecce.co.uk (2013) Coca-Cola Enterprises Ltd : Coke Zero gets a fruity twist for 2013. [online] Available at:
http://www.cokecce.co.uk/news-media/news-releases/2013/coke-zero-gets-a-fruity-twist-for-2013.aspx [Accessed: 21 Mar
2013].

Wikinut
Why Coca-Cola is such a successful brand
Wikinut (2012) Why Coca-Cola is such a successful brand. [online] Available at: http://business.wikinut.com/Why-Coca-
Cola-is-such-a-successful-brand/1do-m9n7/ [Accessed: 13 Mar 2013].

Introduction to Management Group Assignment BM007-IMT
Page 11 of 19

Thenational.ae
Coca-Cola denies rumours it contains alcohol - The National
Thenational.ae (2013) Coca-Cola denies rumours it contains alcohol - The National. [online] Available at:
http://www.thenational.ae/lifestyle/food/coca-cola-denies-rumours-it-contains-alcohol [Accessed: 15 Mar 2013].

The Coca-Cola Company
Advertising and Marketing to Children Policy - The Coca-Cola Company
The Coca-Cola Company (2011) Advertising and Marketing to Children Policy - The Coca-Cola Company. [online] Available
at: http://www.coca-colacompany.com/stories/responsible-marketing [Accessed: 16 Mar 2013].
The Coca-Cola Company
Rumors and Facts About Coca-Cola
The Coca-Cola Company (2011) Rumors and Facts About Coca-Cola. [online] Available at: http://www.coca-
colacompany.com/contact-us/coca-cola-rumors-facts [Accessed: 25 Mar 2013].

Uzunoglu, C.
Coca-Cola ecek
Uzunoglu, C. (2009) Coca-Cola ecek . Coca-Cola ecek (CCI) - Turkey, 3 (2), p.1-4. Available at:
http://www.acornsys.com/Portals/76901/docs/coca-cola-case-study.pdf [Accessed: 19 Mar 2013].





















Introduction to Management Group Assignment BM007-IMT
Page 12 of 19











6.0 Appendix









30%
32%
24%
10%
4%
Revenue Break down of Coca-Cola World
Wide
North America Europe,Eurasia,Middle East Asia Latin America (Inclusive of Mexico) Africa
Turkey
Population (million): 71.9
Employees: 2,726
Number of plants: 8
Capacity (million unit case): 553
Sparkiling Beverages: Coca-
Cola, coke zero, Coca-cola light,
Fanta, Sprite, Sprite 3G,
Schweppes, Sen Sun, Burn
Still beverages: Cappy, Damla,
Turkuaz, Nestea, Powereade,
Dogadan
Appendix 1.0
Introduction to Management Group Assignment BM007-IMT
Page 13 of 19





Appendix 2.0 (CCI turkey)
http://www.cci.com.tr/en/our-company/our-
geography/turkey/
Appendix 2.1 (Product range)
http://assets.coca-
colacompany.com/41/b2/afa3194c4c0b83109f945acbe3db/2008-2009_icecek.pdf
Introduction to Management Group Assignment BM007-IMT
Page 14 of 19





Appendix 3.0 (Pakistan)
http://www.cci.com.tr/en/our-company/our-geography/pakistan/
Appendix 4.0 (Kazakhstan)
http://www.cci.com.tr/en/our-company/our-geography/Kazakhstan/
Pakistan
Population (million): 166.4
Employees: 3121
Number of plants: 6
Capacity (million unit
case): 112
Sparkling Beverages: Coca-
Cola, Diet Cola, Fanta,
Sprite, Sprite zero, Sprite
3G
Still Beverages: Minute
Maid, Kinley
Kazakhstan
Population (million):
15.8
Employees: 915
Number of plants: 1
Capacity (million unit
case): 94
Sparkling Beverages:
Coca-Cola, Coca-Cola
light, Fanta, Sprite,
Schweppes
Still Beverages: Cappy,
Piko, BonAqua, Nestea

Introduction to Management Group Assignment BM007-IMT
Page 15 of 19








Appendix 5.0 (Azerbaijan)
http://www.cci.com.tr/en/our-company/our-geography/azerbaijan/
Appendix 6.0 (Kyrgyzstan)
http://www.cci.com.tr/en/our-company/our-geography/kyrgizstan/
Azerbaijan
Population (million): 8.7
Employees: 422
Number of plants: 1
Capacity (million unit case):
52
Sparkling Beverages: Coca-
Cola, Coca-Cola light, Fanta,
Sprite, Burn
Still Beverages: Cappy,
BonAqua

Kyrgyzstan
Population (million):
166.4
Employees: 3121
Number of plants: 6
Capacity (million unit
case): 112
Sparkling Beverages:
Coca-Cola, Diet Cola,
Fanta, Sprite, Sprite zero,
Sprite 3G
Still Beverages: Minute
Maid, Kinley

Turkmenistan
Population (million): 4.8
Employees: 160
Number of plants: 1
Capacity (million unit case): 4
Introduction to Management Group Assignment BM007-IMT
Page 16 of 19























Appendix 7.0 (Turkmenistan)
http://www.cci.com.tr/en/our-company/our-geography/turkmenistan/
Appendix 8.0 (Jordan)
http://www.cci.com.tr/en/our-company/our-geography/jordan/
Jordan
Population (million): 6.1
Employees: 546
Number of plants: 1
Capacity (million unit case): 30
Sparkling Beverages: Coca-
Cola, Coke Zero, Coca-Cola
light, Fanta, Sprite, Sprite light,
Schweppes, Canada Dry, Burn
Still Beverages: Cappy, Riwa

Iraq
Population (million): 29.4
Employees: 369
Number of plants: 1
Capacity (million unit case): 19
Sparkling Beverages: Coca-Cola,
Coca-Cola light, Fanta, Sprite,
Canada Dry
Still Beverages: Cappy, Kani

Introduction to Management Group Assignment BM007-IMT
Page 17 of 19



















Appendix 9.0 (Iraq)
http://www.cci.com.tr/en/our-company/our-geography/iraq/
Appendix 10.0 (Syria)
http://www.cci.com.tr/en/our-company/our-geography/syria/
Syria
Population (million): 20.5
Employees: 162
Number of plants: 0
Sparkling Beverages: Coca-Cola, Coke
Zero, Coca-Cola light, Fanta, Sprite ,
Sprite light
Still Beverages: Riwa

Population (million): 7.4
Introduction to Management Group Assignment BM007-IMT
Page 18 of 19

































Appendix 11.0 (Tajikistan)
http://www.cci.com.tr/en/our-company/our-geography/tajikistan/
Introduction to Management Group Assignment BM007-IMT
Page 19 of 19